All publicly traded companies on the National Stock Exchange of India with high liquidity are included in the universe

The team does in-depth research to decide the criteria for company selection. Some of the major points that are considered: <ul><li>Figure out which sectors/stocks are in uptrend. Invest only in them. Preferably broader market should also be trending up.</li><li>Stocks which have YoY earnings growth behind them</li><li>Return ratios (RoE/RoCE) should be above cost of capital</li><li>Management quality is non negotiable</li><li>Low D/E is always preferable</li><li>The company should be in the top 3 in its sector</li><li>Institutions/Promoter should be increasing its stake in the stock</li><li>Stock should be liquid enough for one’s investment size so that one can get out quickly on bad news</li><li>Preferably buy regulation/disruption resistant sectors.</li><li>High promoter pledging are an absolute no</li></ul>

Once a company fits all of our internal fundamental criteria, we wait for an opportune entry time. We do a careful study of the stock's technical characteristics and demand/supply. Some examples of what might we do are: <ul><li>We wouldn't buy a stock in a free fall</li><li>Typical buy points come after clear contraction in volatility and volume</li><li>A stock clears all resistance on big (&gt;2x) volumes</li></ul>

Following parameters are considered while assigning weights to stocks in this smallcase: <ul><li>Market capitalization</li><li>Liquidity</li><li>Management quality and vision</li><li>Revenues and earnings visibility</li><li>Risk as a % of capital to be assigned to that stock</li><li>Identification of stock support areas</li></ul>

This smallcase will be rebalanced on an as-needed basis

The final screened stocks are weighted according to our asset allocation rules

East Green Capital - Trend Following

We buy trending companies/sectors having growing businesses, using defined risk position sizes

East Green Capital - Trend Following

Overview

Stocks & ETFs

At a Glance

smallcase is played out